Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Historical Views of Management and Evolution of Management Thought
1. 1
Historical Views of
Management
• We will examine the historical roots of
management theory and practice and
attempt to establish a connection
between the theoretical foundations of
modern management and the concepts
advanced in subsequent chapters of
your text.
2. 2
Alfred P. Sloan
• "My Years With General Motors"
The professional managers are: to manage
the facts, not opinions; to put the strengths
of people to work; to set the performance
example for others, and serve as mentor;
to use dissent and conflict to positive
advantage, and to always accept a
manager's responsibility to be a "servant" of
others.
3. 3
Evolution of Management
Thought
• Effective management played a key role
in the construction of the pyramids, the
use of communication and control of the
Roman Empire, and the legal
framework of commerce in 14th century
VENICE.
4. 4
Evolution of Management
Thought
• The most significant historical point of
reference in the evolution of
management was the advent of the
Industrial Revolution.
• By the turn of the 20th century the
science and practices of management
were on a rapid and continuing path of
development.
5. 5
Major Schools of Thought
• Classical - A focus on developing universal
principles for use in various management
situations.
• Human Resource - A focus on human
needs, the work group, and the role of social
factors in the workplace.
• Quantitative or Management Science
A focus on the use of mathematical
techniques for management problem-
solving.
6. 6
Major Schools of Thought
• Modern Approach
A focus on total systems and contingency
thinking, and an awareness of global
developments in management.
• Continuing Directions
Emphasis on quality and performance
excellence, global awareness, and leadership
roles for a new management.
7. 7
CLASSICAL APPROACHES
• Basic Assumption: People Are Rational
People will rationally consider the
opportunities available to them and do
whatever is necessary to maximize their
economic gain.
– Scientific Management
– Administrative Principles
– Bureaucratic Organization
8. 8
Scientific Management
(Frederick Taylor)
• Develop a science for every job, including
rules of motion, standardized work
implements, and proper working conditions.
• Carefully select workers with the right abilities
for the job.
• Carefully train these workers and provide
proper incentives.
• Provide these workers with the necessary
support.
9. 9
Administrative Principles
(Henry Fayol)
• Rules of Mgmt. (5)
– Foresight
– Organization
– Command
– Coordination
– Control
• Principles of Mgmt.
– Division of work
– Scalar Chain
– Unity of Command
– Unity of Direction
10. 10
(Mary Follett)
• Dynamic Administration
– Believed that groups were mechanisms
through which diverse individuals could
combine their talents for a greater good.
– Placed a high value in the power of
Human Cooperation and pioneered the
concepts and practices of such issues
as Employee-Ownership, Systems
Theory, and Social Responsibility.
11. 11
Bureaucratic Organization
(Max Weber)
• An ideal, intentionally rational, and very
efficient form of organization founded on
principles of logic, order, and legitimate
authority.
– Clear Division of Labor
– Well Defined Hierarchy of Authority
– Formal Rules and Procedures
– Impersonality
– Careers Based on Merit
12. 12
Human Resource Approaches
• Basic Assumption: People are Social and
Self-Actualizing.
• The Hawthorne Studies
– Established the human resource as an essential concern for
management, and one that has unique properties.
– We learned that the nature of the Work Group should be
important.
– We learned about the tendency of people who are singled
out for special attention to perform as anticipated merely
because of expectations created by the situation.
13. 13
Human Resource Approaches
• The Human Relations Movement
– Assertion is that managers who use good human
relations in the workplace will achieve productivity.
– This movement has evolved as the field of
Organizational Behavior - the study of
individuals and groups in organizations.
14. 14
Principle Human Relation
Theories
• Maslow - Theory of Human Needs
People act to satisfy "deprived" needs - needs
for which a satisfaction "deficit" exists.
Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
15. 15
McGregor's
Theory X and Theory Y
• Theory X Managers Assume Subordinates
– Dislike Work
– Lack Ambition
– Are Irresponsible
– Resist Change
– Prefer to be Led
16. 16
McGregor's
Theory X and Theory Y
• Theory Y Managers Assume Subordinates
– Willing to Work
– Capable of Self-Control
– Willing to Accept Responsibility
– Capable of Imagination, Ingenuity,
Creativity.
– Capable of Self-Direction
17. 17
Argyris
Theory of Personality and Organization
• Points out that some insights of the Classical
Approach are inconsistent with the mature
adult personality.
• Suggests that managers who treat people
positively and as responsible adults will
achieve productivity.
• Advises the expansion of job responsibilities,
allow for more task variety, and the
adjustment of supervisory styles to include
more participation and better human
relations.
18. 18
Quantitative Approaches
• Assumption: Applied Mathematics Can Solve
Management Problems
Techniques and Applications
Mathematical Forecasting
Linear Programming
Inventory Modeling
Network Models
Queuing Theory
Simulations
19. 19
Modern Approaches
• Assumption: People are Complex
– Modern Approaches to management respect
the Classical, Human Resources, and
Quantitative schools.
– But they recognize that no one approach
applies universally in all situations, or the
exclusion of the others.
– This Course Is Based On The "Modern
Management Approaches"
20. 20
Modern Approaches
• Systems View
The organization is seen as a
collection of interrelated parts that
function together to achieve a
common purpose.
An Open System interacts with its
environment and a Closed one does not.
21. 21
Contingency Thinking
• Contingency Approaches to
management assert that there is no one
best way to manage, and that what is
best depends in any given circumstance
on the nature of the situation.
• In short the best way depends upon the
situation.
22. 22
Continuing Management
Themes
• Quality and Performance Excellence
• Global Awareness
• Political Sensitivity
• Leadership
• Technology
• Life-long Commitment to Learning